Real Estate Utility Payment Agreement
Real Estate Utility Payment Agreement
I. The Parties
This Real Estate Utility Payment Agreement (the “Agreement”) is entered into as of [Month Day, Year] (the “Effective Date”) by and between the following parties:
A. Property Owner
[Your Company Name], hereinafter referred to as (the “Property Owner”), is the legal owner of the property subject to this Agreement. The Property Owner has the authority to enter into this Agreement and to impose the terms and conditions set forth herein.
B. Tenant
[Tenant’s Name], hereinafter referred to as (the “Tenant”), is the individual or entity that has entered into a lease agreement with the Property Owner for the use of the property. The Tenant has the authority to enter into this Agreement and to comply with the terms and conditions set forth herein.
WHEREAS, the Property Owner owns the property and has leased this property to the Tenant;
WHEREAS, the Tenant has agreed to occupy the property and to pay for utilities as per the terms and conditions of this Agreement;
WHEREAS, the Parties wish to set forth their understanding and agreement regarding the payment of utilities for the property;
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
II. Property Description
The property subject to this Agreement (the “Property”) is owned by the Property Owner and is located at [Property Address]. The Property includes all buildings, structures, and improvements located on the property, as well as any associated rights or interests. The Property is leased to the Tenant under the terms of a separate lease agreement.
III. Utility Services
The Property Owner agrees to provide the Tenant with the following utility services for the property. These services are essential for the comfortable and safe use of the property:
A. Electricity
The Property Owner will ensure that the property has a reliable and adequate supply of electricity. This includes maintaining the electrical systems in the property to ensure they are safe and functional. Any necessary upgrades or repairs to the electrical systems will be carried out promptly to avoid any disruptions to the supply of electricity.
B. Water
The Property Owner will ensure that the property has a consistent and clean supply of water. This involves maintaining the plumbing systems in the property to prevent leaks or disruptions to the water supply. The Property Owner will also take measures to ensure the quality of the water supply meets health and safety standards.
C. Sewage
The Property Owner will maintain the property’s sewage system to ensure it functions properly and safely. This includes promptly addressing any issues or repairs needed in the sewage system. The Property Owner will also ensure that the sewage system complies with local health and environmental regulations.
D. Trash Removal
The Property Owner will arrange for regular trash collection from the property. This includes providing facilities for the separation and collection of recyclable materials. The Property Owner will also ensure that trash removal practices comply with local waste management regulations.
IV. Payment Terms
The Tenant agrees to pay the Property Owner the following amounts for utility services:
A. Electricity
The Tenant agrees to pay [$50] per month for electricity. This amount is based on the Tenant’s estimated usage and the local cost of electricity. The amount may be adjusted periodically to reflect changes in usage or electricity costs.
B. Water
The Tenant agrees to pay [$30] per month for water. This amount is based on the Tenant’s estimated usage and the local cost of water. The amount may be adjusted periodically to reflect changes in usage or water costs.
C. Sewage
The Tenant agrees to pay [$20] per month for sewage services. This amount is based on the cost of maintaining the property’s sewage system. The amount may be adjusted periodically to reflect changes in the cost of sewage services.
D. Trash Removal
The Tenant agrees to pay [$15] per month for trash removal. This amount covers the cost of regular trash collection from the property. The amount may be adjusted periodically to reflect changes in the cost of trash removal services.
V. Payment Schedule
The Tenant agrees to adhere to a specific payment schedule for the utility services provided by the Property Owner. This schedule is designed to ensure timely payments and smooth operation of the services:
A. Payment Date
The Tenant agrees to make monthly payments for utility services on the 1st of each month. This consistent schedule helps both parties to manage their finances effectively.
B. Start Date
The payment schedule will commence from [Month Day, Year]. This date marks the beginning of the Tenant’s responsibility for utility payments.
C. Payment Method
The Tenant will use an agreed-upon method of payment, such as bank transfer or check, to make these monthly payments. This ensures a secure and traceable transaction.
VI. Late Payments
In the event that the Tenant fails to make a payment by the due date, certain measures will be taken:
A. Fee Amount
A late fee of [$25] will be charged. This fee serves as a deterrent against late payments and compensates the Property Owner for the inconvenience caused.
B. Notification
The Tenant will be notified of the late payment and the additional late fee. This notification will be sent as soon as the payment is identified as late.
C. Payment of Late Fee
The late fee will be added to the Tenant’s next utility bill. The Tenant is expected to pay this fee along with the regular utility payment.
VII. Termination of Agreement
The duration and termination process of this Agreement are as follows:
A. Duration
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End Date: This agreement will remain in effect until [Month Day, Year]. This end date provides a clear timeline for the duration of the Agreement.
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Early Termination: The Agreement may be terminated earlier by either party with a [30-day] notice. This provision allows for flexibility in case the circumstances of either party change.
B. Termination Process
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Notice: The party wishing to terminate the Agreement must provide a written notice to the other party. This notice must be given at least [30] days before the intended termination date.
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Settlement: Upon termination, any outstanding payments or obligations must be settled. This includes the final utility payment and any late fees.
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Confirmation: Once all obligations have been met, the termination of the Agreement will be confirmed in writing.
VIII. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date first above written.
Property Owner
[Authorized Representative Name]
[Your Company Name]
Date: [Month Day, Year]
Tenant
[Tenant's Name]
Date: [Month Day, Year]
